One in ten of England’s biggest councils could go bust in three years, report warns

Soaring demand for social care has forced many to raid their cash reserves, the National Audit Office said

By Steve Hawkes, Deputy Political Editor

7th March 2018, 10:49 pm

Updated: 8th March 2018, 3:47 am

ONE IN ten of England’s biggest councils could ‘run out of cash’ in three years because of soaring demand for social care, a bombshell report warns.

The National Audit Office (NAO) last night claimed that 10 per cent of 152 town halls with responsibility for social care were on course to “exhaust reserves” if they carry on spending at the same rate as they did in 2016-2017.

Cash-strapped councils have seen a 33 per cent fall in the number of weekly bin collections since 2010

“If local authorities with social care responsibilities keep using their reserves at current rates, one in ten could have exhausted them within three years.”

The report comes just days after Northamptonshire County Council announced sweeping cuts to frontline services after being forced to impose a spending ban. It also axed a 2 per cent pay rise for
employees.

Alex Hayman of consumer group Which? last night said: “Behind these alarming figures are real people – like the hundreds who have told us of their struggles to find a care home place for themselves or an elderly relative.

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“That is why the Government must take these findings seriously.”

The Sun two weeks ago reported that 147 of 152 councils plan to up council tax this April – with 64 planning a maximum 5.99 per cent hike.

The Local Government Association said that despite the planned increases, vital work such as filling potholes, maintaining parks and running leisure centres and libraries would be under threat.

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